Case Details

Year Initiated/Committed

1992

Year Resolved

1992

Court

n/a

Docket Number

n/a

Lead State

FL

Participating States

FL

Defendant(s)

Central Telephone Company of Florida (Centel)

Case Description

State of Florida sought refunds for customers of Central Telephone Company of Florida (Centel), who may have unknowingly subscribed to Centel’s inside wire maintenance service. Further, the state sought to improve the description of various calling features described in Centel’s telephone directory. The parties agreed to settlement terms in which Centel agreed to refund the full amount paid for inside wire maintenance service since March, 1983, or the date of inception of billing for that service. Each subscriber who indicated that he or she did not know the service was optional, or did not understand what the service was, and those who indicated they no longer wanted to subscribe to the service were entitled to refunds. Further, the agreement also called for Centel to make its telephone bills easier to understand and gave customers the opportunity to verify services for which they pay. Centel also provided separate written confirmation whenever new services were added to customer bills. The parties also agreed to a settlement sum of $10,000 for investigative costs and attorneys’ fees. In 1996, Centel entered a merger agreement with United Telephone Company of Florida (United), a subsidiary of Sprint Corporation. As part of the merger agreement, Centel discontinued its inside wire maintenance service to new customers. Instead, Centel began selling LineGuard to all new service access line customers and other non-subscribers under similar terms as for Centel’s inside wire maintenance service.